Note 19 - Condensed Parent Company Financial Information

12 Months Ended

Dec. 31, 2012

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Note 19. Condensed Parent Company Financial Information

Financial information pertaining only to HomeTown Bankshares Corporation follows. The parent company was formed on September 4, 2009.

CONDENSED BALANCE SHEETS
In Thousands	December 31, 2012		December 31, 2011
Assets
Cash and due from banks	$	721	$	2,292
Investment in bank subsidiary		35,853		30,796
Other assets		145		–
Total assets	$	36,719	$	33,088
Liabilities and Stockholders’ Equity
Total liabilities	$	–	$	–
Stockholders’ equity:
Total stockholders’ equity		36,719		33,088
Total liabilities and stockholders’ equity	$	36,719	$	33,088

CONDENSED STATEMENTS OF INCOME
In Thousands	For the year ended  December 31, 2012			For the year ended  December 31, 2011
Expenses	$	(140	)	$	(42	)
Net loss before income taxes		(140	)		(42	)
Income tax benefit		49			–
Net loss before equity in undistributed net income of subsidiary		(91	)		(42	)
Undistributed net income of subsidiary		4,687			1,961
Net Income	$	4,596		$	1,919

CONDENSED STATEMENTS OF CASH FLOWS
In Thousands	For the year  ended December 31, 2012			For the year  ended December 31, 2011
Cash flows from operating activities:
Net income	$	4,596		$	1,919
Equity in undistributed net income of subsidiary bank		(4,687	)		(1,961	)
Increase in other assets		(145	)		–
Net cash flows used in operating activities	$	(236	)	$	(42	)
Cash flows from investing activities:
Capital contribution to bank subsidiary	$	–		$	–
Net cash flows used in investing activities	$	–		$	–
Cash flows from financing activities:
Issuance of preferred stock net of issuance costs	$	–		$	–
Preferred dividend payment		(1,335	)		–
Net cash flows used in financing activities	$	(1,335	)	$	–
Net decrease in cash and cash equivalents	$	(1,571	)	$	(42	)
Cash and cash equivalents, beginning		2,292			2,334
Cash and cash equivalents, ending	$	721		$	2,292